Logistics and Delivery is a vital part of mid-large sized enterprises. But logistics can quickly turn into a massive problem if the deliverables and the geographies are hugely disparate. Therefore medium and large enterprises need access to truck fleets that are not only from a single source but come equipped with connected trucks driven by tech savvy drivers. TruckBhejo, a tech-logistics start-ups has discovered a new market among medium enterprises in India.
Who is TruckBhejo?
TruckBhejo is a tech-logistics firm who is connecting the supply and demand sides in logistics. They offer their services to all three delivery miles namely, first (farm-factory-warehouse), middle (regional warehouse to city distribution point), and the last mile (distribution point to end consumers). They possess a fleet of trucks and facilitate shipping and deliveries to their clients. Founded in 2016, TruckBhejo is headquartered in Mumbai.
Growth, Presence, and Expansion Plans
TruckBhejo has grown almost 20% in terms of topline since last year. They have also registered an average of 10-12% of gross margin.
Within a span of 5 years, TruckBhejo has expanded their presence to 40 cities, and 7 Indian states. Their platform operates 3000 active trucks and currently operates across 45-50 lanes in the state of Maharashtra.
TruckBhejo wants to raise growth capital to expand the market and tap into the medium enterprise segment operating mainly in last mile services.
The technology-led logistics market
The tech logistics market is valued at $160 Bn and is growing at the rate of 10.5% year-on-year (y-o-y). The market is expected to be valued at close to $200 Bn within the next 6 years. The unorganised sector in the market contributes to almost 65% of the business.
Profit margins in the tech logistics industry
The profit margins in the tech logistics industry vary from service to service. For the full-truck-load service, the gross profit margins vary between 11-13%. Whereas for services like PTL (partial truck load), ecommerce, and express, the margins vary between 17-18%.
Market opportunities among median enterprises
Median-large sized companies face problems when it comes to sending deliverables to hundreds of cities across the country. To ship such a massive load, these companies need to communicate with hundreds of transporters which is cumbersome to them.
Here are the gaps in the median enterprise market in the tech-logistics industry
- Uniting multi-vendor interfaces
- Eliminating geographical restrictions
- Bringing technology to integrate the unorganised supply.
- Carpet coverage of logistics services across the supply chain.
They offer their services to all three delivery miles namely, first (farm-factory-warehouse), middle (regional warehouse to city distribution point), and the last mile (distribution point to end consumers).
Why should you invest in the Median Enterprise segment?
The median enterprise segment does business in the range of INR 100-500 Cr. Mid-sized enterprises also have a presence between 2-10 states in India. Most of the start-up ecosystem including the traditional players are focusing on the bigger blue-chip companies. Also, there is a bigger ecosystem being developed comprising almost 65 Mn SME (small and medium enterprises) players or medium enterprises. The number is eventually going to go up and newer policies will be implemented by the Government.